Subject:
MRV COMMUNICATIONS, INC. ANNOUNCES FIRST QUARTER RESULTS
Date:
Mon, 26 Apr 1999 13:30:50 -0700
From:
Diana Hayden <diana@mrv.com>
To:
(Recipient list suppressed)
FOR IMMEDIATE RELEASE
April 26, 1999
MRV COMMUNICATIONS, INC. ANNOUNCES FIRST QUARTER RESULTS
Chatsworth, California, April 26, 1999 MRV Communications, Inc. (Nasdaq:
MRVC), a leading provider of high speed optical network components and
systems,
today reported results for the first quarter ended March 31, 1999.
Revenues for the March quarter were $70,116,000, a 15% increase from
$60,826,000 in the first quarter of 1998. Net loss for the first quarter of
1999 was $909,000 compared to pro forma net income of $7,339,000, excluding
one-time charges related to the Xyplex acquisition in the quarter ended March
31, 1998. Including the one-time charges related to the acquisition of Xyplex,
net loss in the quarter ended March 31, 1998 was $30,221,000.
Basic and diluted loss per share for the first quarter of 1999 were $0.03
compared to pro forma basic earnings per share of $0.28 and pro forma diluted
earnings per share of $0.26 in the first quarter of 1998. Including one-time
charges related to the Xyplex acquisition, basic and diluted loss per share
were $1.15 for the quarter ended March 31, 1998.
Noam Lotan, President and CEO, commented: “We are satisfied with the progress
the company is making as well as the progress of the three new ventures
that we
funded. MRV is now the only pure player in the convergence of internetworking
technologies. We are in a unique position with our well-focused approach on
LAN, WAN, optical networks, and the Internet.
Our core business, Lightwave Transmission, is very healthy. To that effect we
continue to invest in production capacity, additional space and new talents.
On April 6, MRV announced (under our NBase-Xyplex brand) the first Linux
Switch/Router (“OSR”). This is a high capacity machine with a 40 Gbps
switching
fabric, capable of routing 26 million packets per second, at layers 3 and 4.
The OSR will support 10/100 Mbps Ethernet, Gigabit Ethernet, ATM OC3 and ATM
OC12 interfaces. In addition to this impressive throughput, unique
programmable processors allow new features to be added without hardware
upgrades. By using integrated applications of the Linux Operating System, the
OSR provides smart network applications powered by Symmetric Multiprocessing
Performance (“SMP”). SMP provides faster route table re-calculations and
therefore faster recovery from route changes than routers with a single
processor. The OSR starts with two processors, and will scale to 16. This is
important, as other routers might not have the horsepower to support future
requirements for robust Internet connectivity. Cisco for example, uses a
single
processor.
The Linux Router is the first in the world, allowing programmers to add or
write new applications that will run on top of Linux OS, and will control the
router functionality. This brings a level of openness and flexibility to the
world of routing that proprietary (and closed) operating systems do not have.
The OSR was developed and will be manufactured in Israel. It will be
demonstrated for the first time at the upcoming NetWorld-InterOp show in Las
Vegas, with general availability in Q3.”
Lotan continued: “MRV has funded three promising start-up internetworking
companies: New Access Communications, for Metro-Access networks, Charlotte's
Web Networks, for Carriers' Internet, and HyperChannel, for e-commerce and
Network Security.
New Access is first to combine a commercially viable DWDM system with data
switching in a metropolitan ring. During the quarter, New Access won the
overall Best Product Achievement Award at the ComNet DC trade show.
Charlotte's Web's product is the next generation Terabit Switch/Router for
Internet backbone applications. It will seamlessly integrate Cell and Packet
based traffic, with a rich set of Differentiated Services based on latest IETF
definitions. Non-blocking traffic flow starts at 128 Gbps, scaleable to
multiple Terabits per second. Packet forwarding starts at 200 million packets
per second. Competitive analysis shows Charlotte favorably competing on
processing speed and offering the highest port density per rack space. For
example, 256 Gigabit Ethernet or 64 ports of OC-48 can be supported in a
single
19'' rack. Charlotte plans to exhibit for the first time at the SuperComm
show,
the Telecom industry's most prominent annual event, June 7 to 10.
Our e-commerce startup is HyperChannel. Led by a former Cisco UK executive,
HyperChannel's mission is to build an electronic B to B channel across Europe.
This is accomplished through a proprietary two-tier e-commerce, between
end-users, resellers and distributors. By collapsing the supply chain and
automating the commodity aspect of a two-tier transaction, resellers can focus
on the more productive part of their business, solving end users' problems.
All
this effort facilitates the creation of on-line stores. HyperChannel to date
has performed beyond our expectations.”
This release may contain forward looking statements that involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents filed by MRV with the
SEC, specifically the most recent reports on Forms 10K and 10Q/A, which
identify important risk factors that could cause actual results to differ from
those contained in the forward-looking statements, including potential
fluctuations in operating results, dependence on new product developments,
rapid technological and market changes, manufacturing risks, volatility of the
company's stock price, financial risk management and future growth subject to
risks.
MRV Communications, Inc. is a world class leader in high-speed optical network
components and systems. Its products integrate switching, routing, remote
access, and fiber-optic transmission to enhance the performance of LANs and
WANs and telecommunications networks. MRV's fiber-optic transmission
components send voice, data and video to carriers and residential networks.
Through its NBase-Xyplex brand, the company provides network enhancement
solutions that accelerate the deployment and improve the performance of
complex
data networks.
For more information, please contact:
Investor Relations
Diana Hayden
818/886-6782
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Q1 99 Financials.xls
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Q1 99 Financials.xls
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Diana L. Hayden
MRV Communications, Inc.
8943 Fullbright Avenue
Chatsworth, CA 91311
818/886-6782
fax: 818/773-0906
mrv.com |
